II. SUMMARY OF PHASE I ASSESSMENT RESULTS/RECOMMENDATIONS

Check applicable result for each
hazard, indicating for each “Fail” whether (1)
there is a possible remedy or (2) whether a Phase II assessment
is needed.

Hazard

Pass

Fail

Possible
Remedy

Waste Sites

PCBs

Radon

Underground Storage Tanks

Asbestos

Other (List)

___________

___________

2.

Attach a brief explanation for
each hazard that needs a Phase II assessment. List all data deficiencies,
test results, etc., that require further assessment.

3.

Attach a brief explanation for
each failed hazard that could be corrected by taking remedial actions.
Explain what actions are required and how they should be performed.

4.

Underwriter’s Comments
(Attach Phase I Information Checklist):

Signature: _______________________________

Date: _________________

III. INFORMATION CHECKLIST: INFORMATION SOURCES

Check the information sources used to perform the various
aspects of the Phase I environmental hazard assessment.

1. Overall Property Description

Building Specifications

Lists of Commercial Tenants Previously On-Site

Historical Aerial Photos

Verification of Public Water and Sewer

Current Aerial Photos

Interviews with Local Fire, Health, Land Use, or
Environmental Enforcement Officials

Title History

Site Survey

Neighborhood Zoning Maps

Neighborhood Land Use Maps

Other (List)

2. Waste Sites

Comprehensive Environmental Response, Compensation,
and Liability Information System (CERCLIS) lists or similar state
lists of contaminated properties (covering any properties that are
within a one-mile radius of the subject property)

State Environmental Protection Agency (EPA)
site lists of contaminated properties (covering any properties that
are within a one-mile radius of the subject property)

Site Soil and Groundwater Test Results

Other (List)

3. Polychlorinated Biphenyls (PCBs)

Utility Transformer Records

Site Survey of Transformers

Site Soil and Groundwater PCB Test Results

Other (List)

4. Radon

Water Utility Records

Gas Utility Records

On-Site Radon Test Results

Other (List)

5. Underground Storage Tanks

Oil, Motor Fuel, and Waste Oil Systems Reports

Site Soil and Groundwater Tests

Site Tank Survey

Comprehensive Environmental Response, Compensation,
and Liability Information System (CERCLIS) lists or similar state
lists of contaminated properties (covering any properties that are
within a one-mile radius of the subject property)

Other (List)

6. Asbestos (Required only if
subject property is the conversion of an existing building)

Dated Building Construction/Rehabilitation
Specifications

Engineer’s/Consultant’s
Asbestos Report

Other (List)

IV. INFORMATION CHECKLIST: EVALUATION OF SPECIFIC HAZARDS

Answer all applicable questions by marking the appropriate
box—“Y” for Yes, “N” for
No, or “DK” for Don’t Know:

A. Waste Sites

Y

N

DK

1. Are there results of physical testing (including
on-site sampling of soil and groundwater that meets all regulatory
standards and sound industry practice) to show that the property
is free of waste contamination and is being operated in an environmentally
safe manner?

2. Are there any obvious high-risk neighbors
in adjacent properties engaged in producing, storing, or transporting
hazardous waste, chemicals, or substances?

Note: If the answer to question 1 is “yes” and
the answer to question 2 is “no,” stop here because,
for underwriting purposes, the property will be acceptable from
the standpoint of waste site contamination. Otherwise, answer the questions
below.

3. Was the site ever used for research, industrial,
or military purposes during the last 30 years?

4. Has any of the site space ever been leased
to commercial tenants who are likely to have used, transported,
or disposed of toxic chemicals (such as a dry cleaner, print shop,
service station, etc.)?

5. Is water for the building provided by either
a private company or a well situated on the property?

6. Does the property or any site within one
mile of the property appear on any state or federal list of hazardous
waste sites?

7. Is there any documented or visible evidence
of the handling of dangerous waste on the subject property or on
neighboring sites (such as stressed vegetation, stained soil, open
or leaking containers, foul fumes or smells, oily ponds, etc.)?

Note: If the answer to any of
the questions from 2 through 7 is “yes” or “don’t
know,” then the property either fails or needs a Phase
II assessment conducted. If the answers to all of the questions
2 through 7 are “no,” the property, for underwriting
purposes, will be acceptable from the standpoint of waste site contamination.

B. Polychlorinated Biphenyls (PCBs)

1. Are there any transformers or capacitors
that contain PCBs anywhere on the property?

2. Is there any visible or documented evidence
of soil or groundwater contamination from PCBs on the property?

Note: If the answers to the above questions
are “no,” stop here because, for underwriting
purposes, the property will be acceptable from the standpoint of PCB
contamination. If the answer to a question is “don’t
know,” stop here since a Phase II assessment is required.
Otherwise, answer the questions below.

3. If the answer to question 1 above is “yes,” are
any of the capacitors or transformers inside residential buildings?

4. If the answer to question 1 above is “yes,” are
any of the transformers or capacitors not clearly marked, not well
maintained, or not secure?

5. If the answer to question 1 above is “yes,” is
there any evidence of leakage on or around the transformers or capacitors?

6. If the answer to question 2 above is “yes,” have
PCB concentrations of 50 parts per million or greater been found
in contaminated soils or groundwater?

Note: If the answers to questions
3 through 6 are all “no,” the property, for underwriting
purposes, will be acceptable from the standpoint of PCB contamination.
Otherwise, the property either fails or needs a Phase II assessment.

7. Underwriter’s Comments:

8. Phase I Assessment Results
(check one)

____ Pass ____ Fail ____ Possible
Remedy ____ Phase II Required

9. Underwriter’s Signature
and Date:

C. Radon

Y

N

DK

1. Is there any evidence that nearby structures
have elevated indoor levels of radon or radon progeny?

2. Have local water supplies been found to
have elevated levels of radon or radium?

3. Is the property located on or near sites
that are currently, or were formerly, used for uranium, thorium,
or radium extraction or for phosphate processing?

Note: If the answers to the above questions
are all “yes,” a Phase II assessment is required.
If the answers to questions 2 and 3 are “no,” the
property, for underwriting purposes, will be acceptable from the
standpoint of radon contamination. If the subject property is a
conversion of an existing building, go to question 4.

4. Were the results of an EPA-approved short-term
radon test that was performed in the basement of each of the subject
buildings within the last six months at or below four picocuries
per liter?

Note: If the answer to this question
is “no” or “don’t know,” a
Phase II assessment is required.

5. Underwriter’s Comments:

6. Phase I Assessment Results
(check one)

____ Pass ____ Fail ____ Possible
Remedy ____ Phase II Required

7. Underwriter’s Signature
and Date:

D. Underground Storage Tanks

Y

N

DK

1. Is there a current site survey performed
by a qualified engineer that indicates the property is free of any
underground storage tanks?

2. Is there any visible or documented evidence
of oil or groundwater contamination on the property?

3. Are there any petroleum storage and/or
delivery facilities (including gas stations) or chemical manufacturing
plants located on adjacent properties?

Note: If the answer to question 1 is “yes,” and
the answers to questions 2 and 3 are “no,” stop
here because, for underwriting purposes, the property will be acceptable
from the standpoint of underground storage tank contamination. If the
answers to questions 2 or 3 are “yes” or “don’t
know,” also stop because the property either fails or needs
a Phase II assessment. Otherwise, answer the questions below.

4. Are there any active underground tank facilities
on-site that are used for activities such as motor fuel, waste oil,
or fuel oil storage?

5. If the answer to question 4 is “yes,” have
these facilities been maintained in accordance with sound industry
standards (such as those in the American Petroleum Institute’s
Bulletins 1621 and 1623 or the National Fire Protection Association’s
Bulletins 329, 70, 77, etc.)?

Note: If the answer to question
4 is “no,” go to question 8 below. If the answer
to question 4 is “don’t know,” stop here
because the property either fails or needs a Phase II assessment.
If the answer to question 5 is “no” or “don’t know,” stop
here because the property either fails or needs a Phase II assessment.
If the answers to questions 4 and 5 are “yes,” answer
the questions below.

6. If the answer to question 4 is “yes,” are
any of the tanks more than 10 years old?

7. If the answer to question 6 is “yes,” have
any of the tanks that are more than 10 years old been tested for
leaks within the last year using a test approved by the American
Petroleum Institute?

Note: If the answer to question
6 is “no,” answer the questions below. If the
answer to question 6 is “don’t know,” stop
here because the property either fails or needs a Phase II assessment.
If the answer to question 7 is “no,” answer the
questions below. Otherwise, stop here because the property either
fails or needs a Phase II assessment.

8. Are there any deactivated underground storage
tanks on the property?

9. If the answer to question 8 is “yes,” were
all of the tanks deactivated in accordance with sound industry practices
(such as under the American Petroleum Institute’s Bulletins
1604 and 2202 or the National Fire Protection Association’s
Bulletin 30)?

Note: If the answer to question
8 is “no” or if the answer to question 9 is “yes,” the
property, for underwriting purposes, will be acceptable from the
standpoint of underground storage tank contamination. If the answer
to question 8 is “don’t know,” or if
the answer to question 9 is “no” or “don’t
know,” the property either fails or needs a Phase II assessment.

10. Underwriter’s Comments:

11. Phase I Assessment Results
(check one)

____ Pass ____ Fail ____ Possible
Remedy ____ Phase II Required

12. Underwriter’s Signature
and Date:

E. Asbestos

(Required only if the project is a conversion of an existing
building)

All asbestos-related assessments, testing, remedial action,
and maintenance programs must be in compliance with the Environmental
Protection Agency’s document “Guidance for Controlling
Asbestos-Containing Materials in Buildings” (EPA 560/5024,
1985)

Y

N

DK

1. Was the building constructed prior to 1979?

2. Does a site walk-through reveal any visible
evidence of asbestos?

3. Is there any documented evidence of asbestos?

Note: If the answer to all
of the above questions is “no,” stop here because,
for underwriting purposes, the property will be acceptable from
the standpoint of asbestos contamination. If the answer to any of
the above questions is “yes” or “don’t
know,” answer the questions below.

4. Is there an asbestos survey by a certified,
independent firm that was performed since 1979?

Note: If the answer to question
4 is “yes,” answer the question below. Otherwise,
stop because a Phase II assessment is required.

5. Did the survey find the building to be free
of both treated and untreated asbestos-containing material?

Note: If the answer to question
5 is “yes,” stop here because, for underwriting
purposes, the property will be acceptable from the standpoint of
asbestos contamination. If the answer to question 5 is “no” or “don’t
know,” the property either fails or needs a Phase II assessment.

6. Underwriter’s Comments:

7. Phase I Assessment Results (check one)

____ Pass ____ Fail ____ Possible
Remedy ____ Phase II Required

8. Underwriter’s Signature
and Date:

F. Additional Hazards

(Required only if the project is a conversion of an existing
building)

Y

N

DK

1. Is there any visible or documented evidence
of peeling lead paint on the floors, walls, or ceilings of either
the unit living areas or the common areas?

Note: If the answer to question
1 is “no,” the property, for underwriting purposes,
will be acceptable from the standpoint of lead paint contamination;
however, answer the questions below related to other hazards. If
the answer to question 1 is “yes” or “don’t
know,” the property fails. However, answer the remaining
questions since the project may be eligible if remedial actions
to remove or cover all peeling lead paint are taken before the lender
requests Fannie Mae's project approval.

2. Do the unit living areas or common areas
contain urea-formaldehyde foam insulation that was installed less
than a year ago?

3. If the answer to question 2 is “yes” or “don’t
know,” did the current heating, ventilation, and air conditioning
system meet the standards of the American Society of Heating, Refrigerating,
and Air Conditioning Engineers when it was installed?

Note: If the answer to question
2 is “no” or the answer to question 3 is “yes,” the
property, for underwriting purposes, will be acceptable from the
standpoint of urea-formaldehyde foam insulation contamination. However,
answer the remaining questions. If the answer to question 3 is “no” or “don’t
know,” the property fails. However, answer the remaining
questions since the project may be eligible if the lender can demonstrate
that the ventilation system meets the American Society of Heating,
Refrigerating, and Air Conditioning Engineer’s standards
before it requests Fannie Mae's project approval.

4. Does the local utility providing the drinking
water meet current EPA requirements for lead concentration?